The potential scope for use of private military companies in military operations an historical and economical analysis

Abstract

Soldiers for hire are not a new phenomenon of the twenty-first century; they are as old as war itself. However, in the present day these modern day soldiers for hire are part of well-organized and competently run Private Military Companies (PMC). These companies have proven themselves to be both highly effective and economically efficient. The purpose of this thesis is to identify any functions the Government could outsource to PMC's. This thesis finds that the best types of operation in which to use PMC's are in support of security operations, in small-scale conflicts, and in situations where human rights violations are occurring, yet the rest of the world decides not to intervene. This outsourcing would allow the government to realize cost savings and allow the military to focus on what it does best, its core competencies. Additionally, this thesis outlines potential problems that arise with privatizing warfare and offers proposals to overcome those shortfalls. Finally, this thesis finds that the best way to structure a contract between the United States Government and a PMC is to have built-in incentives to ensure that a PMC not only completes the mission quickly, but also controls costs to the maximum extent possible.